Key Takeaways:
- Sharplink Gaming CEO Joseph Chalom warns that ETH treasury firms chasing high yields face significant risks, including credit, counterparty, and smart contract exposure.
- Late entrants seeking to recover missed gains may adopt risky strategies that could damage the broader crypto sector’s reputation.
- Despite the risks, Chalom views ETH treasury models as highly scalable, though others in the industry question their long-term sustainability.
Sharplink Gaming co-CEO Joseph Chalom has warned that Ether (ETH) treasury firms chasing high yields may face significant risks.
Speaking with Bankless, Chalom compared yield-hunting behavior to traditional finance, where investors seek small additional returns while underestimating associated dangers.
At SharpLink, we believe $ETH is the superior treasury asset — the world’s first true trust commodity.
— Joseph Chalom (@joechalom) September 2, 2025
It’s productive, yield-bearing, programmable, and rapidly emerging as the core institutional digital asset.
I sat down with @RyanSAdams on @BanklessHQ to share why we see… https://t.co/8Dyn1EVDK6
He noted that double-digit ETH returns are possible but carry credit risk, counterparty risk, duration risk, and smart contract risk.
Chalom cautioned that late entrants to the ETH treasury space are especially vulnerable, as many attempt to compensate for missed gains by taking imprudent risks.
Such strategies, he said, could damage the sector’s reputation if capital-raising and yield-enhancing tactics backfire.
He also questioned the sustainability of aggressive growth models that depend on Ethereum’s price staying high.
Sharplink Gaming currently holds around $3.6 billion in ETH, ranking second among public treasuries after BitMine Immersion Technologies.
Altogether, the top 10 ETH treasury firms control roughly 3.6 million ETH, valued near $15.5 billion.
The debate over crypto treasuries is intensifying. Some, like Milo CEO Josip Rupena, liken the risk exposure to 2008’s CDOs, while others, like Bitwise CIO Matt Hougan, argue treasuries expand Ethereum’s accessibility.
Despite risks, Chalom acknowledged ETH treasuries’ scalability as a major strength.
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